play the

Dos and Don'ts of the Credit Card Game



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this is the time of year where people

just start to plan for the holiday gifts

that holiday travel and all that I did I

did it that's what it yeah I haven't

started shopping yet it's not like that

please I did give me a myocardial

infarction this is the time that credit

card companies you know they start

rolling out those incentives they call

you they email you they want to get you

signed up now here to chat about the

do's and the don'ts of credit card

rewards is managing director and wealth

advisor with Morgan Stanley Kathy Rosa

so good morning great well call ways

good to see you uh-huh this is a good

one because credit cards can get a bad

rap right but you say it actually they

can actually benefit you if you play the

game right right and you just need to

educate yourself about how credit cards

work and the benefits to it they can if

you manage your credit card debt and can

secure your financial future and

guarantee financial freedom but you need

to think about it that having a credit

card helps build your credit score we'll

talk a little bit about that it also

affords you the ability not to carry

loads of cash around when you're at the

store and it gives you the ability to

earn rewards so you get something bad

for it or whatever they can also help

you rebuild your credit in that kind of

situation now what are some strategies

though that people need to know for

staying out of debt because I think

that's the thing it's easy to rack it up

I mean college for charge on your credit

card it's just a high interest loan and

and you have to think about how much

that's really gonna cost you so I think

about strategies with that is to start

out with a budget heading into the

holiday season where are you gonna spend

your money and keep track of that in a

journal of what you're going to do and

then at the end of the month you need to

be careful and make sure you pay that

off on time so that strategy number one

is to really track what you're doing

number two was to make sure you pay it

off at the end of the ma huh okay yeah

that's the hard one to do because

sometimes it just doesn't work out there

wait okay so but we do have some like

credit card rewards right like are

things that are good about credit cards

so we're all at the store and your

favorite store that you're at and the

clerk turns you is your turn checking

out and says you can get fifteen twenty

thirty percent off this purchase right

and you pause and you think maybe

should go up on more things I can get

more money off but you really need to

pause and think about what does it fit

into the whole overall budget okay so it

would be good to charge and get that

that discount but you've got to pay it

off at the end of the month if you don't

pay it off in the end of the month the

money that you saved by getting that

discount it's just going to be eaten up

in having typically those cards with

those big rewards or cash back ends up

maybe having a higher annual fee or a

higher interest charge right because

some of those store credit cards have

much higher interest rates than say a

bank credit card right right and some of

these credit cards that if you're a

loyalty member you can get money back

yeah hello

Pottery Barn yeah I mean I'm telling you

I'm like because if you do pay it off

you do get big rewards cuz you wind up

getting these too you know I even

thought credit card that allows you to

get cash contributed to a child's

college funding plan once again they're

awesome there you can research and and

there's one that have better benefits

than others but you need to make sure

that if you're gonna carry a balance

you're gonna have a higher interest rate

charge on those and let's talk about

that how do you determine with the

higher interest rates and the higher

annual fees like because the annual fees

like even if you pay off every month you

still got to pay that annual fee how do

you decide if this particular card is

worth it so I would suggest that people

only have one or two credit cards but if

you have more you better have a journal

keeping track of the card the benefits

what it cost you what the interest rate

is and if you do have some credit card

debt you need to have a schedule at some

point that's gonna enable you to pay it

down and pay off the highest interest

rate charges first which is that also I

talked to people about if you have a lot

of credit cards or you have any credit

cards you need to make sure that you

monitor that yeah you can sign up like

Morgan Stanley will have a service so

you can monitor your credit or if you

don't have a service doing for that you

need to call Experian or some of these

companies and check your credit because

there's broad out there oh and this time

of year is when we really need to watch

Braille and if you have a lot of them

out there it's hard to really kind of

see

do that though that's actually a good

thing to know because I think sometimes

you're afraid to sign up for Experian or

whatever cuz you're afraid you're gonna

give your info to the wrong people but

if we went in a Morgan Stanley you'd be

able to do that yeah you want to monitor

your credit of where you are and and so

credit could be good and bad one of the

things that I've seen that some younger

people think okay I'm not gonna have any

credit I'm not gonna use any credit card

and it happened to me where a client

went to apply for a mortgage and didn't

have a credit score yeah so you do want

to have credit you want to be diligent

about paying it off but the more you

charge and where you pay it off and

establish good credit it'll help your

credit score so then when you go to get

a mortgage or to get a car or to

refinance your home you'll have a higher

credit score which then leads to you

having probably a better interest rate

when you go to get the mortgage Wow one

thing one Domino does thanks the next

Wow good advice that means we need to

start working on Christmas now

it's not even Halloween get crackin for

more information log on to Morgan

Stanley dot-com

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